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11 Jun 2014
EUR/GBP in fresh 2014 lows
FXStreet (Edinburgh) - The solid performance of the sterling post-UK data is dragging the EUR/GBP to print fresh ytd lows around 0.8060 on Wednesday.
EUR/GBP weaker after data
The cross saw its decline accelerated after the unemployment rate in the British economy ticked lower in the three months ended in April to 6.6% vs. 6.7% expected and 6.8% from the previous month. The Claimant Count also surprised to the upside, decreasing by 27.4K vs. a drop of 25.0K forecasted. All in all, the sterling is extending its positive momentum backed by a solid and each day more sustainable recovery in the UK economy. In the opinion of Paul Robson, Senior FX Strategist at RBS, “Overall, the downtrend remains intact and we would expect rallies to struggle”.
EUR/GBP levels to consider
As of writing the cross is losing 0.33% at 0.8057 with the next support at 0.8045 (low Dec.11 2012) followed by 0.8035 (low Dec.10 2012). On the upside, a break above 0.8094 (high Jun.10) would open the door to 0.8122 (high Jun.9) and then 0.8125 (21-d MA).
EUR/GBP weaker after data
The cross saw its decline accelerated after the unemployment rate in the British economy ticked lower in the three months ended in April to 6.6% vs. 6.7% expected and 6.8% from the previous month. The Claimant Count also surprised to the upside, decreasing by 27.4K vs. a drop of 25.0K forecasted. All in all, the sterling is extending its positive momentum backed by a solid and each day more sustainable recovery in the UK economy. In the opinion of Paul Robson, Senior FX Strategist at RBS, “Overall, the downtrend remains intact and we would expect rallies to struggle”.
EUR/GBP levels to consider
As of writing the cross is losing 0.33% at 0.8057 with the next support at 0.8045 (low Dec.11 2012) followed by 0.8035 (low Dec.10 2012). On the upside, a break above 0.8094 (high Jun.10) would open the door to 0.8122 (high Jun.9) and then 0.8125 (21-d MA).